Income of the partnership

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Reference no: EM13144995

Elder Attorney had practiced law for several years and had accumulated $50,000 in accounts receivable. He reported his income for tax purposes under the cash receipts and disbursements method. Elder formed an equal partnership with Senior Counsel, Lawyers Unlimited, a cash-basis law partnership, and transferred his $50,000 accounts receivable to the partnership for their admitted FMV of $50,000. In the first year of the partnership, its cash-basis incom was $100,000, $50,000 of which was the collection of the transferred receivables. When is the income of the partnership reported and by whon?

Reference no: EM13144995

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